2 January 2018 (8:49 AM IST)
Just as we had written in our weekly trend analysis of Indian stock markets, major indexes fell from their resistance levels on Monday.
We had written that in spite of staging a breakout, Sensex and Nifty still face a risk of trend reversal from their major resistance levels and that is exactly what happened yesterday.
Sensex failed to sustain Above 34,000 and Nifty failed to sustain about 10,500. Bank Nifty was already trading with weakness , so once the banking sector started sliding, all other stocks fell down with Bank Nifty.
This is a very natural trading pattern for stock markets trading in a range, which is how Indian stock markets have been trading. Stocks fall down from resistance levels and bounce back from support levels. That is why traders should use pivot trading to trade stocks or indexes in range bound stock markets. Day traders can use pivot levels of major Indian stock indexes given on our pivot trading page.
Nifty’s intra day pivot levels are:
Support levels: 10,393 -10,350-10,278
Resistance levels: 10,507-10,580-10,622
Watch these levels and trade with the trend.
Good luck, enjoy the session!